The American Rescue Plan Act 2021
SBA is currently implementing the American Rescue Plan Act signed into law by President Biden on March 11, 2021. Sign up to receive email alerts from SBA as additional information is available.
The American Rescue Plan Act provides additional relief for the nation’s small businesses and hard-hit industries for programs SBA is currently administering and adds new efforts, including:
- $7.25 billion additional for the Paycheck Protection Program, including to expand eligibility to additional nonprofits and digital news services
- Additional funds allocated for the Shuttered Venue Operators Grant (SVOG) program, and now allows businesses to apply for both a PPP loan after Dec. 27, 2020, and the SVOG
- $15 billion additional for Targeted Economic Injury Disaster Loan (EIDL) Advance payments, including NEW $5 billion for supplemental Targeted EIDL Advance payments for those hardest hit
- NEW: $28.6 billion for the Restaurant Revitalization Fund for industry-focused grants
- NEW: $100 million to establish a Community Navigator pilot program; grants will go to eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources.
For help with applications and more information, please contact:
SBA West Virginia District Office
The US Small Business Administration provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, please visit their Local Assistance page.
WV Small Business Development Center
Paycheck Protection Program Forgiveness
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. Borrowers may be eligible for PPP loan forgiveness. President Biden announced program changes to make access to PPP loans more equitable.
Economic Injury Disaster Loan Program
On Monday, June 15, the SBA reopened the EIDL portal to allow new applications from eligible small businesses that were not able to apply for the loan/advance program earlier this year. There is no indication of how long the portal will remain open, so it’s important that interested eligible businesses apply as soon as possible. FAQ Regarding COVID-19 EIDL
Restaurant Revitalization Fund (RRF)
The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
Shuttered Venue Operators Grant
The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance.
Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.
SBA Debt Relief
Initial debt relief assistance
As a part of the CARES Act, SBA is authorized to pay six months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status (excluding Paycheck Protection Program loans). This debt relief to borrowers was originally dependent on the loan being fully disbursed prior to September 27, 2020, and does not apply to loans made under the Economic Injury Disaster Loan program.
These original provisions were amended on December 27, 2020, through the Economic Aid to Hard-Hit Small Businesses, Non-Profits and Venues Act (Economic Aid Act). The Economic Aid Act revised the eligibility criteria for assistance to include all 7(a), 504, and Microloans approved up to September 27, 2020, even if not fully disbursed. All other provisions for initial debt relief remained the same.
Borrowers need not apply for this assistance. SBA provides this assistance automatically as provided below:
- For loans not on deferment, SBA will make monthly payments based on the next payment due on eligible loans for a total amount equivalent to no more than six months of installment payments.
- For loans currently on deferment, SBA will begin making monthly payments with the first payment due after the deferment period ends for a total amount equivalent to no more than six months of installment payments.
SBA has notified 7(a), 504, and Microloan lenders that it will pay these borrower loan payments. Lenders are to report to SBA periodically on the amounts due once a loan is fully disbursed. Payments collected after March 27, 2020, may be applied to the outstanding loan balance or returned to the borrower at the borrower’s discretion.
Additional debt relief assistance
The Economic Aid Act also authorized additional debt relief payments to 7(a), 504, and Microloan borrowers beyond the six-month period prescribed in the CARES Act. The level of assistance varies based on when the loan was approved and will begin on or after February 1, 2021. Please contact your lender for questions on the availability of this assistance for your SBA loan.
The initiatives described are limited to the level of available funding provided by Congress.
These documents are intended to provide guidance and does not constitute legal advice. It also does not replace official implementation from the relevant agencies. All information on this page is gathered from federal agencies and state representatives.